Lawyer, Consultant, and Independent Examiner’s Fees Eat up the Profits at Swiss Banks

Lawyer, Consultant, and Independent Examiner’s Fees Eat up the Profits at Swiss Banks

The participation of Swiss banks in the US Program to settle the tax dispute with the USA is very costly. High costs are involved in hiring and flying in the US Independent Examiners, external advisers, and setting up internal team. According to the Tages Anzeiger no one wants to call a number, but a number of banks declared that thelegal feeswilleat uphalfof anormalannual profit. In addition to thelegal feestheCategory2bankshave to count with fines as well.

The newspaper also raises that the provision made by banks were first thought to be used at 75% for fines and 25% for lawyers and support, while now the reverse ratio is more likely.

Theevidenceof innocenceunder American lawwillcost millions to Category 3 banks– banks that believe they have not engaged in activities that could have breached US law. An Independent Examiner needs to verify this; those banks do not need to pay a penalty but the handling costs endured by fulfilling the requirements of the US Program is born by the banks.

TheRaiffeisenGroup, for example,opted for Category3. Its CEO Pierin Vincenz is said to have predicted at an internal event a cost of CHF 20 to 25m. Such amountshouldreflect not only thepurelegal fees, but alsotheinternaleffort. Themedia officeinSt.Gallenwillnotconfirmthat number“We currentlyexpectaround 10million Swiss francs,” explains FranzWürth the spokesman of the bank.